WORCESTER, Mass., May 21 /PRNewswire-FirstCall/ --
Allmerica Financial Corporation (NYSE: AFC) announced today it has incurred
approximately $19 million in pre-tax catastrophe losses to date in the second
quarter. The losses are primarily the result of hail, high winds, and
tornadoes, principally in the Midwest and South from April 1 through May 11,
2003. Combined with the $11.2 million in pre-tax catastrophe losses incurred
in the first quarter, the company estimates that year-to-date pre-tax
catastrophe losses for 2003 have been approximately $30.2 million.
Allmerica assumes a certain amount of annual catastrophe losses when it
develops its annual budgets, and for 2003 such losses were assumed to be
approximately three percent of assumed premium for the year. This level of
assumed catastrophe losses varies by quarter due to seasonal variations in
expected loss patterns. The $19 million of pre-tax catastrophe losses incurred
to date in the second quarter approximates the assumed amount for the full
second quarter, and the year-to-date pre-tax amount of $30.2 million is below
the assumed level for the first and second quarters of 2003 combined.
Historically, Allmerica has only reported the effect of catastrophe losses
between scheduled earnings announcements when the company has incurred
significant losses from a single event or a series of related events. However,
given the attention the severe storms have received over the past few weeks,
the company has decided to share this information at this time. In the future,
the company expects to adhere to its historical practice of disclosure with
regard to catastrophe losses between reporting periods.
Allmerica Financial Corporation expects to announce its second quarter
financial results on Monday, July 28.
Certain statements in this release may be considered to be forward-looking
statements as defined in the Private Securities Litigation Reform Act of 1995.
Use of the words "believes", "anticipates", "expects" and similar expressions
is intended to identify forward-looking statements. Assumed quarterly and
annual catastrophe losses constitute forward-looking information, as do
estimated losses which are subject to further development. The Company
cautions investors that any such forward-looking statements are not guarantees
of future performance, and actual results could differ materially. Investors
are directed to consider the risks and uncertainties in our business that may
affect future performance and that are discussed in readily available
documents, including the Company's annual report and other documents filed by
Allmerica with the Securities and Exchange Commission and which are available
at http://www.allmerica.com under "Financial News". These uncertainties
include the possibility of adverse catastrophe experience and severe weather,
adverse loss development and adverse trends in mortality and morbidity,
changes in the stock and financial markets, changes from assumed surrender
activities and assumed stock market returns, adverse selection in surrender
patterns, investment impairments, heightened competition, adverse state and
federal legislation or regulation, financial ratings actions, and various
other factors, including the effect of the Company's restructuring actions.
Allmerica Financial Corporation is the holding company for a diversified
group of insurance and financial services companies headquartered in
Worcester, Massachusetts.
SOURCE Allmerica Financial Corporation
-0- 05/21/2003
/CONTACT: Investors: Henry P. St. Cyr, +1-508-855-2959,
hstcyr@allmerica.com, or Media: Michael F. Buckley, +1-508-855-3099,
mibuckley@allmerica.com, both for Allmerica Financial Corporation/
/Web site: http://www.allmerica.com/
(AFC)
CO: Allmerica Financial Corporation
ST: Massachusetts
IN: FIN INS
SU:
CR-ES
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1769 05/21/200316:09 EDThttp://www.prnewswire.com